Rising incomes and a growing Chinese middle class have led to demand shifts toward more and better quality food. For instance, Chinese diets have changed to incorporate more meat, with average per capita meat consumption reaching 55 kilograms. Even so, that’s still just half of the average per capita meat consumption in America, implying there is plenty of room for Chinese demand to grow. At the same time, however, China’s arable land has been shrinking, closing in on the minimum 300 million acres that the government believes are needed to feed China’s population.

The growing appetites of Chinese consumers have led to investment opportunities in the agribusiness industry across most market segments, from soft commodities to seeds and food processing technologies. As the government pushes forward rural land reforms and moves toward modern, industrial-scale farming, China will need more technology and know-how, much of it residing in the United States. Moreover, rising concern over food safety in China has led companies to seek more vertical integration from the farm to logistics and sales. A maturing Chinese agribusiness market should present increasing opportunities for global investors across the value chain.

Ningbo Tech Bank Co., Ltd.

Company Overview

COMPANY DESCRIPTION

Ningbo Tech-Bank is mainly a hog breeder and processor. It also offers veterinary vaccines and animal feed. It has expanded into the global market in recent years—nearly 5% of its 2016 revenue in 2016 came from its overseas business.

Global Presence

US FDI EXPERIENCE

In late 2016, Ningbo Tech Bank, through its subsidiary TB Food USA Holding Corp, acquired a shrimp producer Texas Primo Broodstock Inc. This is Tech Bank's first US acquisition. Total equity of the subsidiary, together with the acquired Texas company, was later transferred to a joint venture with registered capital of over $24 million.

GLOBAL FDI EXPERIENCE

In 2014, the company invested $15 million for a 40.69% stake in French company Choice Genetics SAS, a hog genetics firm.